Bosses at Alexandra Palace who are slowly turning its commerical fortunes around have agreed to a £500,000 cut in the grant from Haringey Council used to plug its finances.

The council’s draft budget plans, which are currently out for public consultation, reveal the cut will be phased in, with £250,000 removed from the subsidy in 2015/16 and a further £250,000 taken by 2017/18.

Duncan Wilson, chief executive of Alexandra Park and Palace Trust, said: “The trust’s budget from the borough has been under pressure, as have all other Haringey budgets.

“We are planning to meet our new targets by a combination of measures to generate more income and to save on running costs. This will be challenging, but we believe deliverable over the next three years.”

The Palace plans to eventually become fully self-financing and is at the start of an ambitious regeneration programme including plans to upgrade facilities and bring the grand Victorian building back into full use, which includes a new hotel behind its ornate façade.

The Palace has boosted revenues from pop concerts, cultural and sports events, the annual fireworks display and the ice rink to more than £10.5million in recent years.

The council has pledged to continue plugging the Palace’s shortfall until it becomes self-sufficient.

+ A month-long public consultation on the draft budget proposals is under way before finalised plans go before full council in February.